January 1, Push to Enforce Antitrust Laws to Protect Independent Grocers from Big Corporate Giants

A trade group representing independent grocery stores is urging lawmakers and regulators to enforce an existing antitrust law to boost competition and help consumers, rather than focusing on alleged “price gouging.”

The National Grocers Association (NGA), representing family-owned and employee-owned independent grocers and wholesalers, is advocating for the enforcement of the Robinson-Patman Act. This law is aimed at addressing pricing competition dominated by large corporate giants. Chris Jones, NGA’s Chief Government Relations Officer, emphasized that supplier pricing is a major challenge for smaller grocers when competing against behemoths like Walmart.

Jones pointed out that Walmart dominates nearly 30% of the U.S. grocery market, wielding immense power over suppliers which grants it more favorable pricing. The proposed merger of Albertsons and Kroger highlights that even these large companies feel the need to consolidate to compete with Walmart’s market clout.

Jones noted, “The Albertsons-Kroger merger shows how these two companies think their only way to compete is by becoming bigger themselves, aiming to gain the same power over suppliers that Walmart enjoys.”

However, he warned that such mergers spell trouble for smaller, independent grocers. “It means fewer favorable outcomes on price, availability, and deals for everyone else in the market.”

Jones argued that instead of addressing the issue through mergers, the solution lies in enforcing antitrust laws like the Robinson-Patman Act, which is meant to prevent price discrimination. This law ensures that buyers purchasing in equal quantities receive the same pricing, leveling the playing field for smaller competitors.

The Federal Trade Commission (FTC) notes that price discrimination can give favored customers an undue market advantage, not based on superior efficiency. Despite the Act’s existence, enforcement has been lax, with the Department of Justice halting enforcement in 1977 and the FTC not pursuing a case since 2000. However, there’s been recent interest in revitalizing the Act’s enforcement.

Jones dismissed allegations of grocery price gouging, such as those in Vice President Harris’ economic platform, as baseless and politically motivated. He stressed that this rhetoric unfairly targets the food and grocery industry and negatively impacts consumer perceptions of smaller, independent grocers.

He reiterated, “It’s price competition and price discrimination that are the real issues, not price gouging. Our members are already doing all they can to serve their communities despite facing margin pressures.”

Jones urged policymakers to focus on enforcing antitrust laws rather than engaging in divisive rhetoric that harms hardworking independent grocers and misleads the public.

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